If you are in the market for a new home, this is an exciting time for you, but it also often is accompanied by some anxiety and stress. Even someone who has bought and sold several homes can become stressed out by the buying process. To lessen the stress of finding the perfect home and buying it, here are a few tips to think about.
Before you head out and start looking at houses, your financial picture needs to be looking its best. This can start many months or even a year before you look for a house. Take a look at a current credit report and make sure there are no errors on it. If there are, fix them as quickly as possible as these can reduce your credit score unfairly. You really want to shoot for a credit score above 700, although it isn't impossible to buy a home with a lower score. However, you tend to get a better loan with a lower interest rate if you have a strong credit score. Also, don't change jobs or open up a new credit card account in the months prior to buying a home. You want to paint a picture of responsibility, and frugal behavior is key.
Don't set your budget too high, either. You really need to feel comfortable with that monthly mortgage payment. Many lenders won't approve you for a home loan if the mortgage payment is 30% or more of your monthly budget. It is also wise, especially for the first-time buyer, to get pre-approved as this make the buying process much easier. So visit a lender before you call up a realtor and start looking.
When it comes to mortgages, there are several different kinds, and you will need to study the different types and what will best suit your needs. You can choose from loans with rates that are variable or fixed. A fixed loan, such as a 30-year fixed, means that the interest rate will stay the same throughout the duration of your loan. This can be a great option if you can snag a great rate and plan on living in the home for many years. A variable rate can go up and down every year, which means your payment will go up and down every year. Variable rates often are lower than fixed, so these can be a good idea for someone who doesn't plan on staying in the home for many years. There are also loans that are fixed for a few years and then vary, and the initial rate usually is lower than a fixed rate.
You also need to find a house that you really love, and that means it has to offer the amenities you need and want. Bring a list to your realtor, so he or she will have a solid idea about what items you absolutely must have and what items you would really like to have. While you might not get it all, your realtor will find a better match if he has a clearer picture of your needs, likes and dislikes.
If you are searching for Livermore real estate, San Ramon real estate, Pleasanton real estate or perhaps another area in Alameda or Contra Costa County, you will need to find a real estate company that specializes in properties in these areas, such as 1stInSite.com. They can help you buy or sell a home, as well as purchasing investment properties and commercial properties.
Before you head out and start looking at houses, your financial picture needs to be looking its best. This can start many months or even a year before you look for a house. Take a look at a current credit report and make sure there are no errors on it. If there are, fix them as quickly as possible as these can reduce your credit score unfairly. You really want to shoot for a credit score above 700, although it isn't impossible to buy a home with a lower score. However, you tend to get a better loan with a lower interest rate if you have a strong credit score. Also, don't change jobs or open up a new credit card account in the months prior to buying a home. You want to paint a picture of responsibility, and frugal behavior is key.
Don't set your budget too high, either. You really need to feel comfortable with that monthly mortgage payment. Many lenders won't approve you for a home loan if the mortgage payment is 30% or more of your monthly budget. It is also wise, especially for the first-time buyer, to get pre-approved as this make the buying process much easier. So visit a lender before you call up a realtor and start looking.
When it comes to mortgages, there are several different kinds, and you will need to study the different types and what will best suit your needs. You can choose from loans with rates that are variable or fixed. A fixed loan, such as a 30-year fixed, means that the interest rate will stay the same throughout the duration of your loan. This can be a great option if you can snag a great rate and plan on living in the home for many years. A variable rate can go up and down every year, which means your payment will go up and down every year. Variable rates often are lower than fixed, so these can be a good idea for someone who doesn't plan on staying in the home for many years. There are also loans that are fixed for a few years and then vary, and the initial rate usually is lower than a fixed rate.
You also need to find a house that you really love, and that means it has to offer the amenities you need and want. Bring a list to your realtor, so he or she will have a solid idea about what items you absolutely must have and what items you would really like to have. While you might not get it all, your realtor will find a better match if he has a clearer picture of your needs, likes and dislikes.
If you are searching for Livermore real estate, San Ramon real estate, Pleasanton real estate or perhaps another area in Alameda or Contra Costa County, you will need to find a real estate company that specializes in properties in these areas, such as 1stInSite.com. They can help you buy or sell a home, as well as purchasing investment properties and commercial properties.
About the Author:
Madeleine Glazier enjoys writing about the real estate industry. If you are looking for Livermore real estate agents, or to find Pleasanton CA real estate agents, please check out the 1stInsite site today.
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